This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Community West Bancshares Earns $2.3 Million In Fourth Quarter, Nonaccrual Loans Decrease 33% Compared To Prior Quarter End, Results Highlight Continued Success Of Turnaround Plan

GOLETA, Calif., Jan. 29, 2013 (GLOBE NEWSWIRE) -- Community West Bancshares (Community West or the Company), (Nasdaq:CWBC), parent company of Community West Bank (Bank), today reported it earned $2.3 million in the fourth quarter of 2012 (4Q12) compared to net income of $613,000 in third quarter of 2012 (3Q12) and a net loss of $8.6 million in the fourth quarter a year ago (4Q11). For the full year, Community West reported net income of $3.2 million compared to a net loss of $10.5 million a year ago.

"Our team's success in executing our Strategic Plan on schedule allowed us to end a highly successful year with three quarters of profitability behind us and restore the Bank to stable footing," stated Martin E. Plourd, President and Chief Executive Officer. "Our 2013 focus is on addressing growth in a responsible manner that supports lending in the communities we serve and to continue to work diligently to improve asset quality and reduce problem assets."

The Company's $895,000 net reduction in the provision for loan losses in 4Q12 was primarily the result of two factors: net quarterly loan loss recoveries of $304,000 and a $17.1 million decrease in total loans held for investment as problem assets continue to be resolved. The ratio of the allowance for loan losses to total loans held for investment remained basically unchanged – 3.66% at December 31, 2012 compared to 3.65% as of September 30, 2012.

4Q12 Financial Highlights

  • Nonaccrual loans declined 32.7% to $22.4 million at December 31, 2012, compared to $33.3 million at September 30, 2012.
  • Net income of $2.3 million in 4Q12.
  • Earnings of $0.26 per diluted share in 4Q12.
  • Net interest margin continued to be strong and was 4.91% in 4Q12, compared to 4.65% in 3Q12 and 4.84% in 4Q11.
  • Net real estate owned (REO) and repossessed assets, after subtracting the SBA guarantee, decreased to $1.9 million at December 31, 2012 compared to $3.8 million three months earlier and $5.6 million a year earlier.
  • The total allowance for loan losses equaled 3.66% of total loans held for investment at December 31, 2012, compared to 3.65% at September 30, 2012 and 3.24% a year ago.
  • Community West Bank's capital ratios continue to strengthen - Total risk-based capital ratio was 15.27% and Tier 1 leverage ratio was 10.69% at December 31, 2012, an increase compared to Total risk-based capital ratio of 13.89% and Tier 1 leverage ratio of 9.84% at September 30, 2012. The Bank's regulatory agreement requires that ratios of 12% and 9%, respectively, be maintained.

Including $263,000 of dividends and accretion on preferred stock, the net income applicable to common stockholders in 4Q12 was $2.1 million, or $0.26 per diluted share, in 4Q12 compared to net income applicable to common stockholders of $360,000, or $0.06 per diluted share, in 3Q12 and a net loss applicable to common stockholders of $8.8 million, or $1.47 per diluted share, in 4Q11. In 2012, including $1.0 million in preferred stock dividends, the net income applicable to common stockholders was $2.1 million, or $0.31 per diluted share, compared to a net loss applicable to common stockholders of $11.5 million, or $1.93 per diluted share, in 2011. Book value per common share was $6.29 at December 31, 2012, compared to $5.93 at September 30, 2012 and $5.94 at December 31, 2011.

1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs